• Slovakian lawmakers voted 112-2 in favor of a law intended to cut taxes on the sale of digital currency.
• When selling virtual currency after one year has passed since its acquisition, it is proposed to tax income at a tax rate of 7%.
• The vote constituted the third reading of the bill in the Council, Slovakia’s sole legislative body.

Slovakia Passes Crypto Tax Bill

Proposed Tax Rate

Slovakian lawmakers on Wednesday voted 112-2 in favor of a law intended to cut taxes on the sale of digital currency. When selling virtual currency after one year has passed since its acquisition, it is proposed to tax income at a tax rate of 7%, while crypto held for less long periods would be included alongside other taxable income, according to an explanatory document issued by a grouping of members of the Slovak National Council.

Third Reading

The June 28 vote constituted the third reading of the bill in the Council, Slovakia’s sole legislative body. European Union member states such as Slovakia are free to set their own tax rules for crypto, offering a way to boost crypto popularity.

Tax Breaks Offered

Tax breaks offered in Portugal formed a major part of the country’s attractiveness to the sector, though ministers announced a U-turn on that favorable treatment last year.

Crypto Popularity

EU member states are free to set their own regulations regarding taxes for cryptocurrencies and this could potentially lead to increased crypto adoption and use.

Portugal’s U-Turn

Portugal offered generous tax incentives which made it attractive for cryptocurrency entrepreneurs but government ministers have recently announced that they will no longer be providing these incentives.

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